For personal use only. 3 rd Annual PNG Mining & Logistics Conference 25 June 2013

Transcription

1 3 rd Annual PNG Mining & Logistics Conference 25 June 2013

2 Technical Disclosures and Forward-Looking Disclaimers This presentation has been prepared by Resource Mining Corporation Limited ( RMC or the Company ). It should not be consideredasanofferorinvitationtosubscribefororpurchaseanysecuritiesinthecompanyorasaninducementto make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. This presentation contains forecasts and forward looking information. Such forecast, projections and information are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied. RMC have not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by applicable laws, RMC make no representation and can give no assurance, guarantee or warranty, express or implied, as to, and take no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation. You should not act or refrain from acting in reliance on this presentation material. This overview of RMC does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investments decision. Competent Persons Statement: The information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mark Hill, who is a Member of the Australian Institute of Geologists. Mark Hill is a director of Exman Consultancy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mark Hill consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears.

3 Corporate Overview Capital Structure ASX Code RMI Shares currently on issue 2,700M Shares fully diluted Market Cap A$2.7M Cash (Mar ) A$2.1M Top 20 shareholders 73.8% Sinom (Hong Kong) Ltd 43% Board & Senior Management Assets PNG - WOWO Gap Nickel WA Tenements Registered Office Warwick Davies Bill Mackenzie Zhang Chi Mark Hill Francis Casper Managing Director NE Chairman NE Director Exploration Manager Country Supervisor PNG 702 Murray Street West Perth 6065 Western Australia

4 WOWO Gap Nickel Laterite Project Established mining industry and mining regulations Proximity to Asian markets 35km from potential coastal export site Fixed wing to nearby Embessa or Obea

5 A Globally Significant Nickel Project Global Nickel Oxide Resources Mt of Contained Metal % Ni and 0.06% Co (JORC 2004) 70% of holes Ni>1% 12 km strike length holes drilled 0 Total contained Ni 1.32 Mt Source: Intierra RMG and various industry research Reflects 100% of projects

6 Nickel Uses Nickel (Ni) is primarily used for the production of stainless steel (66%) and super alloys (12%) Nickel has many applications within construction, electronics, transport, energy, medicine, food production and consumer goods The factors which make nickel and its alloys valuable commodities include strength, corrosion resistance, high ductility, good thermal and electric conductivity and catalytic properties Stainless Steel Stainless Steel Non Ferrous Alloys Alloy Steels Plating Foundry Batteries Other

7 Stainless Steel Growth Stainless steel production has a long track record of healthy global growth, ~5.3% pa since 1975 Much of the growth in the last decade has been driven by China now ~40% of global demand Ongoing urbanisation and population growth, particularly in Asia will underpin long-term demand growth Global Stainless Steel Production 2012 China USA Brazil EU Other Europe Japan S. Korea Taiwan S Africa China India Source: Heinz H. Pariser, June 2013

8 Nickel Laterites / Nickel Pig Iron Nickel is sourced from two primary deposit types, nickel laterite and nickel sulphide Nickel sulphides make up 40% of current global production of Ni but only 27% of new global Ni resources Laterites are generally shallow (open pit) and therefore cheaper to mine than sulphides (underground) Iron oxide content associated with laterites present unique opportunities for stainless steel production Chinese processors have dramatically increased their demand for laterite ore since 2008 (+380%) for the manufacture of Nickel pig iron (NPI) which in turn is used for the production of stainless steel Global nickel resources by ore type Laterites 73% Laterites Sulphides Sulphides 27% NPI Production in China Kt f Source: Shanghai Tsingshan Mineral Co Ltd, June 2013

9 Stainless Steel Production Traditional stainless steel production Pure nickel is melted together with pig iron and/or scrap steel, chromium, manganese and silicon in an electric furnace to produce various grades of stainless steel Nickel Pig Iron as a precursor to stainless steel production Developed in China as a cheaper alternative to using pure nickel Utilises laterite nickel ores rather than pure nickel Laterite nickel ore is mixed with coking coal and a mixture of fluxes Mixture is heated in either a blast furnace or an electric furnace depending on desired grade Use of Rotary Kiln Electric Furnaces (RKEF) now driving growth of NPI The NPI process short-circuits the typical costly hydrometallurgical route for producing nickel NPI contains 4 to 15% nickel. The rest of the metal is pig iron an important advantage since iron is also needed to produce stainless steel Tsingshan Iron and Steel, Every Chinese mill s primary mission: minimise usage of pure nickel and maximise usage of NPI

10 Rotary Kiln-Electric Furnace Growth The rapid growth in the use of RKEF means the NPI sector is the main supplier of nickel to the stainless steel market Cost of RKEF is ~10% lower than traditional electric furnaces and produces a higher grade product Four Chinese RKEF operators currently trialling new technology that promises to reduce energy consumption in the RKEF process by a further ~70% Increasing Ratio of NPI Production by RKEF (China) 10% 40% 45% 90% 60% 55% RKEF 2011 Electric Furnace RKEF 2012 Electric Furnace RKEF 2013f Electric Furnace Source: Shanghai Tsingshan Mineral Co Ltd, June 2013

11 Saprolite v Limonite Saprolite is magnesium silicate ore with a relatively high Ni content and low cobalt, iron and moisture content Saprolite has traditionally required a different processing route to Limonite Value of WOWO Gap saprolite not realised in 2009 PFS as not amenable to High Pressure Acid Leaching (HPAL) WOWO Gap ore is 66% saprolite which is required for the production of high grade Chinese NPI using RKEF s driven by the rising popularity of 300 series stainless steel Opportunity to ship saprolite ore direct to China Limonite is effectively a highly weathered low grade iron ore with a relatively low nickel and magnesia content and high cobalt, silica and moisture content Certain steel smelters in China blend nickel limonite ore with conventional iron ore to produce stainless steel feed products Limonite can also be used in RKEF s to produce 200 series stainless steel Additional opportunity to deliver Limonite ore to the recently commissioned Ramu project in PNG

12 WOWO Gap Processing Options WOWO Gap Saprolite Limonite Chinese RKEF High grade NPI Japanese FeNi Smelter Ferronickel 3 rd party HPAL Ni Co Hydroxide Chinese Blast Furnaces Low grade NPI or PI Next generation on site processing Saprolite & Limonite in one flowsheet

13 Indonesian Supply Gap Laterite ore used in Chinese NPI originates primarily from Indonesia and the Philippines Imports from these countries have grown exponentially since 2008 Indonesian Government will ban unprocessed Ni ore exports from Jan 2014 Indonesia represents around half of the current nickel laterite feed source for Chinese SS producers and is the world s largest producer in terms of nickel content Processed nickel production in Indonesia will not quickly eventuate to fill Chinese supply gap New sources of laterite ore will be required significant opportunity for WOWO Gap Project

14 Ore to Market: Shipping Opportunities Development Options Nickel ore to be trucked from WOWO Gap site to coastal export point (~35km) A landing barge will transport nickel ore from shore and secured to barge mounted crane for loading Midstream loading a barge mounted crane will be stationed beside an ocean going vessel Used successfully in New Caledonia Cost effective export solution

15 WOWO Gap Development Pathway Better define Saprolite/Limonite parameters Further resource drilling Finance & JV partner Commissioning Scoping study Definitive Feasibility Study

16 Significant Exploration Upside Mineralisation is open to the north and south of current resource model Purchase of EL 1979 and EL 1980 (neighbouring licence areas) in 2012 Low cost drilling using light weight man portable drill rigs (RMC owns 2 rigs)

17 Investment Opportunity Large, globally significant Nickel laterite JORC resource Rapidly growing demand for nickel laterite ore in China Close to proposed coastal export point proximity of WOWO Gap Project to Asian markets Strong market for WOWO Gap Saprolite value not accounted for in 2009 PFS Significant exploration upside in adjacent licence areas Low cost drilling, ~A$100 / metre Highly experienced and innovative team Stable jurisdiction with progressive mining regulations and taxation system Responsible corporate citizen, well regarded in PNG

18 Thank you For personal use only

19 Appendix: WOWO Gap Mineral Resource Estimate 2011 Mineral Resource Mt Nickel (%) Cobalt (%) Estimate (JORC 2004) Indicated Inferred Total Contained Metal (kt) 1, Figures may not add due to rounding 2. Mineral Resources are reported using a cut off grade of 0.8% Ni 3. Mineral Resources which are not Ore Reserves do not have demonstrated economic viability